Nishat Mills Final HRM Project

Final project of
Human resource management
Submitted to:
Sir Hamad
Submitted by:
Muhammad Azam
11452
Mohsin Ali
11453
Muhammad Amen
11455
Saba zulfiqar
11432
Hafiza Ayesha naz

11447
[NISHAT TEXTILE MILL LIMITED]
NISHAT TEXTILE MILL LIMITED
TABLE OF CONTENTS
1. COMPANY INFORMATION………………………………………. 3
2. HISTORY BACKGROUND AND
INTRODUCTION…………………………………………….. 6
3. VISION OF THE COMPANY……………………………………… 7
4. MISSION STATEMENT…………………………………………… 7
5. HR POLICIES AND PRACTICES………………………………… 8
6. RECRUITMENT AND SELECTION………………………….… 13
7. TRAINING AND DEVELOPMENT………………………………. 20
8. PERFORMANCE APPRAISAL…………………………………… 24
9. COMPENSATION AND BENEFITS……………………………... 28
10.CONCLUSION……………………………………………………. 32
Page 2
SUPERIOR UNIVERSITY RAIWIND ROAD LAHORE
COMPANY INFORMATION
BOARD OF DIRECTORS:
Mrs. Naz Mansha
Chief Executive/Chairperson
Mian Raza Mansha
Mian Hassan Mansha
Mr. Muhammad Nawaz Tishna (NIT)
Mr. Faisal Ehsan Ellahi
Mr. Khalid Qadeer Qureshi Chief Financial Officer
Mr. Muhammad Azam
Rana Muhammad Mushtaq
AUDIT COMMITTEE:
Mr. Faisal Ehsan Ellahi Chairman/Member
Mian Hassan Mansha Member
Mr. Muhammad Azam Member
COMPANY SECRETARY:
Mr. Khalid Mahmood Chohan
Riaz Ahmad & Company
Chartered Accountants
LEGAL ADVISOR:
Mr. M. Aurangzeb Khan, Advocate,
Chamber No. 6, District Court, Faisalabad.
BANKERS TO THE COMPANY:
 ABN AMRO Bank
 Albaraka Islamic Bank B.S.C (E.C)
 Allied Bank of Pakistan Limited
 Askari Commercial Bank Limited
Page 3
 Bank Alfalah Limited

 Citibank N.A.
 Crescent Commercial Bank Ltd.
 Deutsche Bank
 Faysal Bank Limited
 Habib Bank Limited
 Habib Bank A.G. Zurich
 KASB Bank Limited
 Meezan Bank Limited
 National Bank of Pakistan
 NIB Bank Limited
 PICIC Commercial Bank Limited
 Standard Chartered Bank
 The Hong Kong & Shangai
 Banking Corporation Limited
 Union Bank Limited
 United Bank Limited
MILLS:
 Nishatabad, Faisalabad (Spinning, Processing,
Stitching units & Power Plant)
 12 K.M. Faisalabad Road, (Weaving units & Power Plant)
Sheikhupura.
 21 K.M. Ferozepur Road, Lahore. (Stitching unit)
 5 K.M. Nishat Avenue (Weaving, Dyeing & Finishing unit
 Off 22 K.M. Ferozepur Road, Lahore. and Power Plant)
 20 K.M. Sheikhupura Faisalabad (Spinning unit)
Road, FerozeWatwan
Page 4
REGISTERED OFFICE & Nishat House,

SHARES DEPARTMENT
53, A, Lawrence Road, Lahore.
Tel: 042-6367812-16
Fax: 042-6367414
HEAD OFFICE:
7, Main Gulberg, Lahore.
Tel: 042-5716351-9
Fax: 042-5716349-50
E-mail: nishat@nishatmills.com
Website: www.nishatmills.com
LIAISON OFFICE:
Ist Floor, Karachi Chambers,
Hasrat Mohani Road, Karachi.
Tel: 021-2414721-23
Fax: 021-2412936
Page 5
Back ground history and introduction of the company
NML mills limited commenced business in 1951 as a partnership concern, which was converted
into private limited company in 1959. In 1961, the company went public and was listed on the
Karachi stock exchange, the only stock exchange in the country at that time. NML started out as
weaving unit with 500 semi – automatic looms, later 10000 spindles were added, laying the
foundation on nation’s biggest textiles composite project at Nishat mills limited Faisalabad
covering 98 acre of Landis providing all producti on process under one roof i.e.
spinning, weaving, processing, stitching and power generation.
When Pakistan came into being there was only 16 texti le mills out of which only
12were in operati on. It grew to 70 in 1957 as industrial development takes place.
Now a day there are 596-texti le mills out of which 442 are in operati on. The export
revenue of textile industry contributes a large share to the GDP of Pakistan.
Textiles Exports from Pakistan
Nishat gray cloth exports account for roughly 20 % of Pakistani gray cloth exports. The fi rm
has been exporti ng to the USA for many years, and has only recently started to
export to EU countries.
Nishat Mills Limited, the flagship company of the group was established in 1951. Its annual
turnover for the year is over Rs.17 billion (US$ 283 million). NML with the production facility of
270,000 spindles, 740 looms and dyeing & printing capacity of 7 million meters (7.65 million
yards) makes Nishat the largest composite textile set up in Pakistan.
Nishat mills limited are the single largest textile composite unit in Pakistan. The company is a
leading export of textile products having extensive spinning, weaving, dyeing, printing, finishing
and stitching facilities at Faisalabad, Sheikhupura, and Ferozewatwan Lahore. NML is the
flagship company of Nishat group one of the largest conglomerates with interest in the textile,
cement and financial sector. The Nishat group families members are associated concerns
collectively hold 47% of NML’s equity.
Page 6
NML’s products range is compressed and made ups. The proration of processed fabrics and
made ups in the total sales mix currently less than half, but this is steadily increasing. The
company management team comprises highly qualified professionals and remains stable over
the years. The strong management team ensures effective de regulation of functional
responsibility across departments facilitating a smooth flow of operations.
Mission Statement
To provide quality products to customers and explore new markets to

Promote/expand sales of the Company through good governance and foster a sound and
dynamic team, so as to achieve optimum prices of products of the Company for sustainable and
equitable growth and prosperity of the Company.
Vision Statement
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and
finished product manufacturing Company with highly professionals and fully equipped to play a
meaningful role on sustainable basis in the economy of Pakistan.
To transform the Company into a modern and dynamic power generating
Company with highly professionals and fully equipped to play a meaningful role on sustainable
basis in the economy of Pakistan.
Page 7
CHAPTER: 1
HR POLICIES AND
PRACTICES
In
NISHAT MILLS LIMITED
Page 8
HR Policies and Practices being followed by the Nishat mills limited

Human resource department is the key department in any organization same is the case with
Nishat textile mills limited Lahore. HR department has to look after all the important activities. It
is responsible for the process of hiring, firing, training, development and all other related
activities carried out. Human resource department is also responsible for the process of designing
and evaluating the jobs and determining pay structure for the jobs.
JOB ANLYSIS
Job Analysis
Job Description Job Specification
In the job analysis, HR Department of Nishat mill play the key role in the job identification,
respective duties and responsibilities. They systematically collect, evaluate, and organize the
information about jobs.
JOB SPECIFICATION
Once you are aware of the type of person you are looking for your job vacancy, you can design a
"Job Specification" profile. In Nishat mill limited the job specification includes:
Qualification of employee
Experience of employee
Page 9
Training or development needed for the particular job
Personal attributes required for the job
Interpersonal skills and communication skills.
JOB EVALUATION
Job Evaluation is based on methods and practices of ordering jobs or positions with respect to
their value or worth to the organization. According to Nishat textile mill limited following
factors are considered important while making job evaluation which is:
Complexity of the Job.

How much Stress one can Bear.
Available Budget for Compensation.
Experience Required for the Job.
Company Need for the Employee for that Job.
Abilities required performing a Job.
METHOD USED FOR JOB EVALUATION
According to Nishat mill limited the method used for Job Evaluation is as follows:
Classification Method
Ranking Method
Point Method
Nishat mill limited use Classification Method when an employee is performing well and has a
chance to get promoted with the same position but at higher level.
On the other hand Nishat textile mills limited believes that there hierarchy is flat in nature. Due
to which they consider that the pays varies according to the position of the
Page 10
Hierarchy. The top management will get more salary as compared to employees of middle
management.
Methods for Collecting Job Analysis Information
There are various ways to collect information on the duties, responsibilities and activities of job.
In Nishat mills limited they use interview, questionnaire and observation. These methods are
implemented as follow:
By the Interview
In Nishat mills limited Human Resource Department conduct job analysis interview to find the
competent information from the employee. The interview is mostly conducted by the employ
time by time and analysis the job of the all the employee. That is difficult for the hr manger that
he is conducting the interview from all the employ and then analysis the job of the employee.
By Observation
Observation method is easy for the hr manger from the interview in this method the manger only
look after or observe the entire employee within a short period of time. In Nishat mills limited
some jobs are analyzed through direct observation of HR manager e.g. assembly line worker and
accounting clerk.
Questionnaires
In this procedure HR manager fill out questionnaire from employees to describe their job related
duties and responsibilities. They use structured format for questionnaires and also use open
ended questions.
Job descriptions
Page 11
After collecting information HR manager produce job description. Job description is written
statement of what the worker actually does, how he or she does it, and what the job’s working
conditions are.
In Nishat mills limited there is no standard format for writing a job description. However, most
descriptions contain section that covers:
To whom the employee is responsible.
What are the Job Grade, title, and location of the job?
Job Summary and duties. It briefly describes which are the duties of the employees,
their responsibilities and brief introduction of the job.
Working conditions. In this section of description, travel requirements and some other
features of the job is described.
Page 12
CHAPTER: 2
RECRUITMENT
&
SELECTION
Page 13
Recruitment and selection
Recruitment and Selection Process:
Employment Recruiting: Applicants Use selection

planning & Build a pool complete tools; tests to
forecasting of candidates application screen-out
form applicants
Candidate
becomes
employee Director or department head
interview final candidates to make
final choices
‘Creating a pool of well qualified and talented candidates and choosing the best candidate from
that pool.’
Recruitment is the process of finding and attracting capable applicants for employment. In the
Nishat textile mills limited Lahore, obviously responsibility of recruitment lies on Personnel
Department. They adopt the following procedure for recruitment. Nishat mill limited has
standard a list of jobs that are filled in accordance with international standards. However these
lists are not permanent and new jobs are added to it keeping in view the changing needs of the
workforce. A new vacancy in Nishat textile mills limited may arise because of the need to
replace the retiring staff, dismissed staff, promoted staff or replacing an employee on job rotation
Page 14
THE NEED OF THE RECRUITMENT
According to the Annual Human Resources Plan, concerned department manager requests the
Personnel department to recruit the employees with adequate qualification and experience. Then
the Personnel Department uses the following channels of recruitment.
Types of recruitment
Internal recruitment
Recruiting candidates in Nishat mills limited Human Resource Department first recruit the
employees from the company. For this purpose they establish personal records and skill banks.
These help them in finding competent employees. Internal sources of Nishat mills limited are
Job posting
Rehiring
Job posting
Job posting means given the higher post from the previous post to the employee that is good for
the employee for the development of the career of the employee. In job posting Human Resource
Department publicize the job to employees by posting it on company intranets or bulletin boards.
Rehiring
rehiring means the company hire those employee who will leave the company and retire from the
post of the company so the company hire those person that is good for the company due to those
employee familiar with the company.
External Recruitment:
External recruitment is a process in which the company gathering and attracting the persons from
outside the company. For external recruitment the candidate fill the following conditions.
Page 15
No candidate under the age of eighteen will be considered.

To avoid conflict of interest, hiring of close relations .
However candidates falling in this category who have exceptionally good credentials may
be considered.
Hiring supervisors will need to explain in their assessment of the candidate their qualities that
justify hiring. A final decision will rest with the concerned Divisional Head who will need to
ensure that there is no conflict of interest. Human Resources will advise Department Heads on
salary ranges to be offered to the applicant keeping internal and external equity in perspective.
Following are some external sources through which candidates are recruit in Nishat mills
limited:
Recruiting through internet

Advertising
Employment agencies
Temporary agencies
Recruiting through internet
Internet is very easy method for the external recruitment but that is costly for the company in
which the company pay the employee agencies for the recruitment.In Nishat mills limited most
of the time job ads are given on internet because today most of the people use internet. In this
way they got relevant resume and many of which include the necessary experience for required
post. They use many other sites for job ads like
www.expatriates.com
www.bayrozgar.com
www.careerberg.com
Page 16
Employment agencies
In Nishat mills limited recruitment is also made with some employment agencies in Pakistan.
These agencies recruit some experienced jobs and managerial jobs. These employment agencies
help the all the company those wanted to hire the persons and want to hire those people who are
competent and having a great experience.
Application:
Through application the candidate personally fill the application and send to the company for the
post which is required by the company. Applicants may apply online by registering with the web
based recruitment portal. However, when considered for a specific position, they will be required
to fill the standard application form of the Company.
ADVERTISEMENT THROUGH NEWSPAPERS
Jobs are also advertised through Newspapers of national repute. Advertising is an effective
method of seeking recruits, since ads can reach a wider audience than employee referrals or
unsolicited walk -INS, it is considered as better of the above.
SELECTION
Page 17
Recruitment seeks to create a pool of suitable applicants.

Once that Pool has been assembled, the selection process
begins. In Nishat textile mills limited the selection
process is a series of steps through which applicants
pass. These are given in the following:
PRELIMINARY SCREENING
In this stage, Personnel Department performs the function of short listing.
PROPER INTERVIEW
After the short listing, proper interview is conducted by Personnel Manager in which general
suitability of candidate is evaluated.
INTERVIEW FOR TECHNICAL SUITABILITY
In this stage, candidate's technical knowledge and experience is assessed by the concerned
department's manager. The result of the interview is discussed with the Personnel Manager for
further consideration. If the candidate passes this stage, then he/she is called the next stage.
FINAL INTERVIEW AND NEGOTIATIONS
This final interview is conducted by Personnel Manger and two important areas are discussed.
Negotiation on pay
Working conditions and employment contract is also discussed
Page 18
INVESTIGATION
Background of candidate is investigated by personnel department about the information’s which

the candidate has given.
FINAL SELECTION
After successfully completing all the stages he is finally selected for concern job. The selection
process can be summarized in the following way.
Preliminary screening
Initial interview
Technical interview
Final interview
Background investigation
CHAPTER 3
Page 19
TRAINING
AND
DEVELOPMENT
Page 20
TRAINING AND DEVELOPMENT:
Employee Orientation:
Employee Orientation means;
“A procedure of providing new employees with basic Background information about the firm.
Once the selection process is completed, new employees are oriented in order to become
productive contributors. According to the Personnel Manager, Orientation not only improves the
rate at which the employees are able to perform their job but also helps employees satisfy their
personal desires to be part of the Nishat textile mills limited social fabric. Nishat mill feels
responsibility for orienting the employees so that they can become familiar with organizations
environment and working procedure easily. Personnel manager gives brief introduction about the
job which the new employee will perform and then they are oriented to their respective
departments.
Brief introduction of Nishat mills limited

Complete Company profile
Organization
Product profile that’s made by the company
The working hours
Head office
Plant
Canteen mess
Traveling
Important telephone number
And also for the orientation the company will giving the employee hand book to the employees
which have complete information about the company.
Page 21
TRAINING AND DEVELOPMENT
Even after a comprehensive orientation and proper job placement, new comers in the company
are not able to perform satisfactorily. So they require training which help employees to do their
job satisfactorily and moreover the benefits of training may extend through out person's entire
career and it helps develop that person for future responsibilities. At Nishat mill the emphasis is
on development of the employees to help the individual handle future responsibilities. At Nishat
mill there is a full fledge training department to conduct the training and monitor the training
programmed.
Training methods:
Nishat mills limited train their employees by two ways:
On the job training

Off the job training
Training in Nishat mills limited
Training in Nishat mills limited is basically of two types.
Training to new employees

Training to existing employees
Page 22
Training to new employees
When the company select the fresh candidate from the market those candidates are not well
trained from the job as well as the working condition for this purpose the company will
organizing the training for the new employee and trained them becaue they are given good result
for the company tha is good for the company as well employee. Nishat mills limited basically
has a general induction-training plan for newly employed people. After induction training the
employee has been shifted to the department he was employed for, to go through departmental
training and the training of other relevant departments whom he has to interact in his day-to-day
activities
TRAINING TO EXISTING EMPLOYEES
Training to exiting employee also is given in Nishat textile mills limited because these
employees in not know about the computerized machinery. to introduce that new technology to
the old employee the company will be given the training to his old and exiting employee.
Page 23
CHAPTER: 4
PERFOMANCE
APPRAISAL
Page 24
PERFORMANCE APPRAISAL
Performance appraisal is a critical activity of HR management. Its goal is to provide an accurate

picture of past and/or future employee performance. To achieve this performance standards are
established. The standards are based on the job related criteria that best determine successful job
performance. Nishat textile mills limited has developed a complete performance appraisal system
by which job performance of the employee is evaluated. Personnel department also uses the
information gathered through performance appraisals.
The objective of the system is to get the performance feedback which allows the employee,
manager and Personnel Manager to step in with appropriate actions to improve the performance.
Which Appraising Method The Company Is Using:

360 degree appraisal system:
360 degree appraisal system is mostly and common used in the companies. Mostly it is done for
senior management; the company takes the feedback of their senior management by workers, co-
workers, employees, customers, suppliers and other business persons.
In Nishat mills limited mostly they have hired a Supervisor for appraising the employees having
a log of employee’s good and bad behavior during a particular period of his job and they review
the performance
Check Yearly performance

Through Performance ratting
Page 25
Who should do the appraising?

the hr manger is responsible to do the appraising.
CAREER PLANNING
Career planning is very important aspect for development of the employees. By career planning
employee's career goals are set and to achieve them. Nishat textile mill limited feels the
responsibility to develop the careers of their employees so that they would be able to get
themselves high and high in corporate hierarchy. Then the principle aim of career development
programs at Nishat textile mill limited is to help employees, analyze their abilities and interests
to better match personal needs for growth and development with the needs of the
organization.
Training and Development:
Training and development is a process in which the company conducted the training for the
employee that helps the company as well as helps the employee to develop his best future. Nishat
mills limited recognize the value of professional development and personal growth for
employees. Therefore, company encourages its employees who are interested in continuing
education and job specific training to research these further and get approval before signing up
for the seminars or courses. The purpose of this policy is to reinforce the commitment the
company to a learning environment. Employees are encouraged to attend training and
educational programs that will enhance their abilities to perform and grow in their jobs.
Supervisors are expected to reinforce this commitment as well as participate in training. The
Company is committed to employee professional development.
Promotions and transfers:
Page 26
The promotion of the employee occurs when an employee is moved from one job to another that
is higher is pay, responsibility, and/or organizational level. The promotional criteria have
following features:
It is based on the past service record and performance appraisal system.

Person is evaluated individually before promotion.
It depends on the vacant seats (whether exist or not).
Only recommended and adequately qualified persons are promoted.
When the person become capable to perform and take the responsibility of his/her boss,
according to the succession plan he should be promoted upward in the hierarchy.
Page 27
CHAPTER: 5
COMPENSATION
AND
BENIFITS
Page 28
COMPENSATION & BENEFITS
“All forms of pay or rewards going to employees and arising from their employment”
Nishat textile mill limited follow to all laws and

regulations of government. For instance, Nishat
follows Minimum Wage Board Act, Industrial
Relations Standing Ordinance, and Workman
Compensation Act.
Nishat mill has developed grades for rank and

file workers and have structured Pay Scale
according to labor market and competition
within the hospitality industry of Pakistan. The compensation for executive and secretaries is
negotiable depending on the abilities and performances.
OBJECTIVES OF COMPENSATION
Compensation needs to be high enough to attract applicants.

Retain present employees.
Compensation management strives for internal and external equity.
Comply with legal regulations imposed by government.
Page 29
How pay rates are established?
Nishat mills limited has established its pay rates

To conduct a survey outside the companies and then established the pay rate for his
employee.
Matching the worth of the job of the employee.
Matching the group whose pay that’s rates.
Established the pay with the pay grade
HEALTH AND SAFETY
Health and safety is very important for the entire employee. If an employee is no having good
health he cannot perform his job well.
HEALTH AND SAFETY MEASURES
Fire fighting course is mandatory for all levels.

They have a dispenser in the mill to take and care the
employee.
Helmet plan is implemented.
If any accident happens the injured persons are rushed
to nearby hospital.
FEATURES OF COMPENSATION SYSTEM AND SOCIAL SERVICES
Fixed salary
Overtime is paid according to Government rules and regulations i.e. double on Gazettes
holidays.
Group Insurance scheme is practiced for the compensation of two objectives:
Page 30
i) Accidents
ii) Injuries
Employees old age benefit scheme.

Gratuity scheme.
Bonus is awarded (Minimum one bonus in a year)
Monthly Medical Allowance
Social Security services are obtained for employees.
Paid leaves.
Page 31
Conclusion.
We are concluded that the human resource department of Nishat textile mill limited is very
strong and good. The process of recruitment in the Nishat textile mill limed is very good for both
internal recruiting and external recruiting.
The appraising system of the Nishat textile mill limited also very good and they are checking the
performance to the employee and given them training if they need. The orientation system is also
very good in the Nishat textile mill limited due to the Nishat textile mill limited is the strongest
in the textile industry.
Page 32

Nishat Mills Final HRM Project

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Nishat Mills Final HRM Project

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Final project of

Human resource management

Hafiza Ayesha naz

 Bank Alfalah Limited

REGISTERED OFFICE & Nishat House,

Back ground history and introduction of the company

To provide quality products to customers and explore new markets to

HR Policies and Practices being followed by the Nishat mills limited

Job Description Job Specification

Training or development needed for the particular job

Personal attributes required for the job

Interpersonal skills and communication skills.

Complexity of the Job.

METHOD USED FOR JOB EVALUATION

Methods for Collecting Job Analysis Information

To whom the employee is responsible.

Recruitment and selection

Recruitment and Selection Process:

Employment Recruiting: Applicants Use selection

THE NEED OF THE RECRUITMENT

No candidate under the age of eighteen will be considered.

Recruiting through internet

Recruiting through internet

ADVERTISEMENT THROUGH NEWSPAPERS

Recruitment seeks to create a pool of suitable applicants.

In this stage, Personnel Department performs the function of short listing.

INTERVIEW FOR TECHNICAL SUITABILITY

FINAL INTERVIEW AND NEGOTIATIONS

Background of candidate is investigated by personnel department about the information’s which

TRAINING AND DEVELOPMENT:

Brief introduction of Nishat mills limited

TRAINING AND DEVELOPMENT

On the job training

Training in Nishat mills limited

Training in Nishat mills limited is basically of two types.

Training to new employees

Training to new employees

TRAINING TO EXISTING EMPLOYEES

Performance appraisal is a critical activity of HR management. Its goal is to provide an accurate

Which Appraising Method The Company Is Using:

Check Yearly performance

Who should do the appraising?

Training and Development:

Promotions and transfers:

It is based on the past service record and performance appraisal system.

COMPENSATION & BENEFITS

Nishat textile mill limited follow to all laws and

Nishat mill has developed grades for rank and

Compensation needs to be high enough to attract applicants.

How pay rates are established?

Nishat mills limited has established its pay rates

HEALTH AND SAFETY

HEALTH AND SAFETY MEASURES

Fire fighting course is mandatory for all levels.

FEATURES OF COMPENSATION SYSTEM AND SOCIAL SERVICES

Employees old age benefit scheme.

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